This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Russell Simmons' Prepaid Cards May Soon Offer Loans, 5% Cash Back

NEW YORK ( MainStreet) -- Russell Simmons is considering offering alternatives to payday loans and cash-back rewards to users of his RushCards as competition in the prepaid debit card market widens.

The additional offerings would build on two services RushCard, his prepaid Visa (V - Get Report) card, recently launched. The first is a goal program that offers cardholders the opportunity to earn $2 back for each month that they maintain a balance of $500 or more in subset savings accounts. The second allows those who have direct deposit to get paycheck funds two days early.

Entrepreneur Russell Simmons is mulling features to make his RushCards "the best savings account out there."

But Simmons said in an interview that he is "looking to see if we can provide a cheaper loan" so his cardholders don't have to resort to payday lenders to pay monthly bills. He also hopes to raise cash-back rewards to 5% on up to $10,000 in funds users manage to save toward specified financial targets in their RushGoals accounts each month.

"When we do this, it's going to be the best savings account out there," Simmons says. He adds that both offerings are still in the planning stages and will require "more research and development" before any plans are finalized.

The potential additions to RushCard's services come at a time when the prepaid debit card market is heating up. This week, finance guru Suze Orman launched a low-fee card that provides its users with credit monitoring services furnished by TransUnion and major issuers such as American Express (AXP - Get Report) and Capital One (COF - Get Report) added low-fee prepaid cards to their arsenals in 2011.

Simmons says he doesn't plan to change the RushCard's current fee structure, despite the fact that its $9.95 monthly fee is higher than many of its competitors -- a factor has drawn some criticism and even the attention of the Florida Attorney General's Office last summer. Instead, his focus is to add services and tools to give underbanked and low-income people easier access to their money while improving their financial literacy.

"I'm going to keep innovating," he says. "My job is to provide good service and financial well-being. The education process is expensive ... If I find ways to lower the price, I'll lower the price."

>To submit a news tip, email: tips@thestreet.com.

Follow TheStreet on Twitter and become a fan on Facebook.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AXP $78.48 -2.03%
COF $78.51 -0.42%
V $65.59 -0.21%
AAPL $124.24 0.70%
FB $83.01 0.11%

Markets

DOW 17,678.23 -40.31 -0.23%
S&P 500 2,056.15 -4.90 -0.24%
NASDAQ 4,863.3620 -13.1570 -0.27%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs